PALM BEACH GARDENS, Fla.,
July 29, 2021 /PRNewswire/
-- Carrier Global Corporation (NYSE: CARR) today reported
financial results for the second quarter of 2021 and updated its
full year outlook. Carrier is the leading global provider of
healthy, safe, sustainable and intelligent building and cold chain
solutions.
"I am very pleased with our second quarter results. We
delivered strong revenue growth over the second quarters of both
2020 and 2019. Our operational performance also enabled us to meet
higher than expected customer demand," said Carrier Chairman &
CEO David Gitlin. "We see secular
trends supporting continued growth. We are making targeted organic
and inorganic investments to further enhance our differentiation
and deliver long-term value to customers and shareowners. Given our
first half performance, healthy backlog, and improved expectations
for the remainder of the year, we are again raising our full-year
guidance for sales, adjusted EPS, adjusted operating margin and
free cash flow."
Second Quarter 2021 Results
Carrier's second quarter
sales of $5.4 billion were up 37%
compared to the prior year and organic sales were up 31% over the
same period. The strong sales performance was broad-based across
all three segments, including growth in commercial HVAC, transport
refrigeration, the Fire & Security segment and continued
strength in North American residential HVAC. GAAP operating profit
in the quarter of $783 million was up
77% from last year and adjusted operating profit of $821 million was up 72%. These results benefitted
from higher volume and productivity that more than offset cost
increases.
Net income was $487 million, and
adjusted net income was $567 million.
GAAP EPS was $0.55 while adjusted EPS
was $0.64. Net cash flows provided by
operating activities were $561
million and capital expenditures were $79 million, resulting in free cash flow of
$482 million. The second quarter
results include the results of Guangdong Giwee Group and its
subsidiaries ("Giwee") following Carrier's acquisition of 70% of
Giwee on June 1, 2021.
Updated Full-Year 2021 Outlook*
Carrier is announcing the following updated outlook for
2021:
- Sales growth of 14% to 16%, up from 7% to 10%
-
- Organic sales growth of 10% to 12%, up from 5% to 8%
- Completed acquisitions to add approximately 1%
- Currency translation to add approximately 3%, up from
approximately 2%
- Adjusted operating margin greater than 13.5%
- Adjusted EPS of $2.10 to
$2.20, up from $1.95 to $2.05
- Free cash flow of about $1.9
billion, up from about $1.7
billion
- Chubb is included in the full-year 2021 outlook
*Note: When the company provides expectations for organic
sales, adjusted operating profit, adjusted operating margin,
incremental margins / earnings conversion, adjusted EPS and free
cash flow on a forward-looking basis, a reconciliation of the
differences between the non-GAAP expectations and the corresponding
GAAP measures generally is not available without unreasonable
effort. See "Use and Definitions of Non-GAAP Financial Measures"
below for additional information.
Conference Call
Carrier will host a webcast of its
earnings conference call today, Thursday,
July 29, 2021, at 8:30 a.m.
ET. To access the webcast, visit the Events &
Presentations section of the Carrier Investor Relations site at
ir.carrier.com/news-and-events/events-and-presentations or to
listen to the earnings call by phone, dial (877) 742-9091.
About Carrier
As the leading global provider of
healthy, safe, sustainable and intelligent building and cold chain
solutions, Carrier Global Corporation is committed to making the
world safer, sustainable and more comfortable for generations to
come. From the beginning, we've led in inventing new technologies
and entirely new industries. Today, we continue to lead because we
have a world-class, diverse workforce that puts the customer at the
center of everything we do. For more information, visit
www.corporate.carrier.com or follow Carrier on social media at
@Carrier.
Use and Definitions of Non-GAAP Financial
Measures
Carrier Global Corporation ("Carrier") reports its
financial results in accordance with accounting principles
generally accepted in the United
States ("GAAP").
We supplement the reporting of our financial information
determined under GAAP with certain non-GAAP financial
information. The non-GAAP information presented provides
investors with additional useful information, but should not be
considered in isolation or as substitutes for the related GAAP
measures. Moreover, other companies may define non-GAAP
measures differently, which limits the usefulness of these measures
for comparisons with such other companies. We encourage investors
to review our financial statements and publicly filed reports in
their entirety and not to rely on any single financial measure. A
reconciliation of the non-GAAP measures to the corresponding
amounts prepared in accordance with GAAP appears in the tables
attached to this release. The tables provide additional information
as to the items and amounts that have been excluded from the
adjusted measures.
Organic sales, adjusted operating profit, adjusted operating
margin, incremental margins / earnings conversion, earnings before
interest, taxes and depreciation and amortization ("EBITDA"),
adjusted EBITDA, adjusted net income, adjusted earnings per share
("EPS"), the adjusted effective tax rate, and net debt are non-GAAP
financial measures.
Organic sales represents consolidated net sales (a GAAP
measure), excluding the impact of foreign currency translation,
acquisitions and divestitures completed in the preceding twelve
months and other significant items of a nonoperational nature
(hereinafter referred to as "other significant items"). Adjusted
operating profit represents operating profit (a GAAP measure),
excluding restructuring costs and other significant items.
Adjusted operating margin represents adjusted operating profit as a
percentage of net sales (a GAAP measure). Incremental margins
/ earnings conversion represents the year-over-year change in
adjusted operating profit divided by the year-over-year change in
net sales. EBITDA represents net income attributable to
common shareholders (a GAAP measure), adjusted for interest income
and expense, income tax expense, and depreciation and amortization.
Adjusted EBITDA represents EBITDA, as calculated above, excluding
non-service pension benefit, non-controlling interest in
subsidiaries' earnings from operations, restructuring costs and
other significant items. Adjusted net income represents net
income attributable to common shareowners (a GAAP measure),
excluding restructuring costs and other significant items.
Adjusted EPS represents diluted earnings per share (a GAAP
measure), excluding restructuring costs and other significant
items. The adjusted effective tax rate represents the effective tax
rate (a GAAP measure), excluding restructuring costs and other
significant items. Net debt represents long-term debt (a GAAP
measure) less cash and cash equivalents. For the business
segments, when applicable, adjustments of operating profit and
operating margins represent operating profit, excluding
restructuring and other significant items.
Free cash flow is a non-GAAP financial measure that represents
net cash flows provided by operating activities (a GAAP measure)
less capital expenditures. Management believes free cash flow
is a useful measure of liquidity and an additional basis for
assessing Carrier's ability to fund its activities, including the
financing of acquisitions, debt service, repurchases of Carrier's
common stock and distribution of earnings to shareowners.
When we provide our expectations for organic sales, adjusted
operating profit, adjusted operating margin, incremental margins /
earnings conversion, adjusted EPS, and free cash flow on a
forward-looking basis, a reconciliation of the differences between
the non-GAAP expectations and the corresponding GAAP measures
(expected net sales, operating profit, operating margin,
incremental operating margin, diluted EPS and net cash flows
provided by operating activities) generally is not available
without unreasonable effort due to potentially high variability,
complexity and low visibility as to the items that would be
excluded from the GAAP measure in the relevant future period, such
as unusual gains and losses, the ultimate outcome of pending
litigation, fluctuations in foreign currency exchange rates, the
impact and timing of potential acquisitions and divestitures,
future restructuring costs, and other structural changes or their
probable significance. The variability of the excluded items
may have a significant, and potentially unpredictable, impact on
our future GAAP results.
Cautionary Statement
This communication contains
statements which, to the extent they are not statements of
historical or present fact, constitute "forward-looking statements"
under the securities laws. From time to time, oral or written
forward-looking statements may also be included in other
information released to the public. These forward-looking
statements are intended to provide management's current
expectations or plans for our future operating and financial
performance, based on assumptions currently believed to be
valid. Forward-looking statements can be identified by the
use of words such as "believe," "expect," "expectations," "plans,"
"strategy," "prospects," "estimate," "project," "target,"
"anticipate," "will," "should," "see," "guidance," "outlook,"
"confident," "scenario" and other words of similar meaning in
connection with a discussion of future operating or financial
performance or the separation and distribution from United
Technologies Corporation (the "Separation" and the "Distribution"),
since renamed Raytheon Technologies Corporation.
Forward-looking statements may include, among other things,
statements relating to future sales, earnings, cash flow, results
of operations, uses of cash, share repurchases, tax rates and other
measures of financial performance or potential future plans,
strategies or transactions of Carrier, the estimated costs
associated with the Separation, Carrier's plans with respect to our
indebtedness and other statements that are not historical facts.
All forward-looking statements involve risks, uncertainties and
other factors that may cause actual results to differ materially
from those expressed or implied in the forward-looking statements.
For those statements, we claim the protection of the safe harbor
for forward-looking statements contained in the U.S. Private
Securities Litigation Reform Act of 1995. Such risks, uncertainties
and other factors include, without limitation: (1) the effect of
economic conditions in the industries and markets in which Carrier
and our businesses operate in the U.S. and globally and any changes
therein, including financial market conditions, fluctuations in
commodity prices, interest rates and foreign currency exchange
rates, levels of end market demand in construction, the impact of
weather conditions, pandemic health issues (including COVID-19 and
its effects, among other things, on production and on global
supply, demand and distribution as the outbreak continues and
results in a prolonged period of travel, commercial and other
restrictions and limitations), natural disasters and the financial
condition of our customers and suppliers; (2) challenges in the
development, production, delivery, support, performance and
realization of the anticipated benefits of advanced technologies
and new products and services; (3) future levels of indebtedness,
capital spending and research and development spending; (4) future
availability of credit and factors that may affect such
availability, including credit market conditions and Carrier's
capital structure and credit ratings; (5) the timing and scope of
future repurchases of Carrier's common stock, including market
conditions and the level of other investing activities and uses of
cash; (6) delays and disruption in the delivery of materials and
services from suppliers; (7) cost reduction efforts and
restructuring costs and savings and other consequences thereof; (8)
new business and investment opportunities; (9) risks resulting from
being a smaller, less diversified company than prior to the
Separation; (10) the outcome of legal proceedings, investigations
and other contingencies; (11) the impact of pension plan
assumptions on future cash contributions and earnings; (12) the
impact of the negotiation of collective bargaining agreements and
labor disputes; (13) the effect of changes in political conditions
in the U.S. (including in connection with the Biden administration
in Washington, D.C.) and other
countries in which Carrier and our businesses operate, including
the effect of changes in U.S. trade policies or the United Kingdom's withdrawal from the European
Union, on general market conditions, global trade policies and
currency exchange rates in the near term and beyond; (14) the
effect of changes (including potentially as a result of the Biden
administration in Washington,
D.C.) in tax, environmental, regulatory (including among
other things import/export) and other laws and regulations in the
U.S. and other countries in which we and our businesses operate;
(15) the ability of Carrier to retain and hire key personnel; (16)
the scope, nature, impact or timing of acquisition and divestiture
activity, including among other things integration of acquired
businesses into existing businesses and realization of synergies
and opportunities for growth and innovation and incurrence of
related costs; (17) the expected benefits of the Separation; (18) a
determination by the U.S. Internal Revenue Service and other tax
authorities that the Distribution or certain related transactions
should be treated as taxable transactions; (19) risks associated
with indebtedness, including that incurred as a result of financing
transactions undertaken in connection with the Separation, as well
as our ability to reduce indebtedness and the timing thereof; (20)
the risk that dis-synergy costs, costs of restructuring
transactions and other costs incurred in connection with the
Separation will exceed Carrier's estimates; and (21) the impact of
the Separation on Carrier's business and Carrier's resources,
systems, procedures and controls, diversion of management's
attention and the impact on relationships with customers,
suppliers, employees and other business counterparties.
The above list of factors is not exhaustive or necessarily in
order of importance. For additional information on identifying
factors that may cause actual results to vary materially from those
stated in forward-looking statements, see Carrier's reports on
Forms 10-K, 10-Q and 8-K filed with or furnished to the SEC from
time to time. Any forward-looking statement speaks only as of the
date on which it is made, and Carrier assumes no obligation to
update or revise such statement, whether as a result of new
information, future events or otherwise, except as required by
applicable law.
CARR-IR
Contact:
|
Media
Inquiries
|
|
Danielle
Canzanella
|
|
561-365-1101
|
|
Danielle.Canzanella@Carrier.com
|
|
|
|
Investor
Relations
|
|
Sam
Pearlstein
|
|
561-365-2251
|
|
Sam.Pearlstein@Carrier.com
|
Carrier Global
Corporation
Condensed
Consolidated Statement of Operations
|
|
|
(Unaudited)
|
|
For the Three
Months
Ended June
30,
|
|
For the Six
Months
Ended June
30,
|
(dollars in
millions, except per share amounts; shares in
millions)
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net
sales:
|
|
|
|
|
|
|
|
Product
sales
|
$
|
4,584
|
|
|
$
|
3,275
|
|
|
$
|
8,448
|
|
|
$
|
6,422
|
|
Service
sales
|
856
|
|
|
697
|
|
|
1,691
|
|
|
1,438
|
|
Total Net
sales
|
5,440
|
|
|
3,972
|
|
|
10,139
|
|
|
7,860
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Cost of products
sold
|
(3,235)
|
|
|
(2,343)
|
|
|
(5,959)
|
|
|
(4,580)
|
|
Cost of services
sold
|
(586)
|
|
|
(488)
|
|
|
(1,167)
|
|
|
(1,017)
|
|
Research and
development
|
(125)
|
|
|
(94)
|
|
|
(246)
|
|
|
(192)
|
|
Selling, general and
administrative
|
(813)
|
|
|
(637)
|
|
|
(1,556)
|
|
|
(1,329)
|
|
Total Costs and
expenses
|
(4,759)
|
|
|
(3,562)
|
|
|
(8,928)
|
|
|
(7,118)
|
|
Equity method
investment net earnings
|
87
|
|
|
57
|
|
|
125
|
|
|
86
|
|
Other income
(expense), net
|
15
|
|
|
(25)
|
|
|
18
|
|
|
(71)
|
|
Operating
profit
|
783
|
|
|
442
|
|
|
1,354
|
|
|
757
|
|
Non-service pension
(expense) benefit
|
19
|
|
|
14
|
|
|
37
|
|
|
31
|
|
Interest (expense)
income, net
|
(71)
|
|
|
(81)
|
|
|
(164)
|
|
|
(118)
|
|
Income from
operations before income taxes
|
731
|
|
|
375
|
|
|
1,227
|
|
|
670
|
|
Income tax (expense)
benefit
|
(234)
|
|
|
(106)
|
|
|
(338)
|
|
|
(299)
|
|
Net income from
operations
|
497
|
|
|
269
|
|
|
889
|
|
|
371
|
|
Less: Non-controlling
interest in subsidiaries' earnings from operations
|
10
|
|
|
8
|
|
|
18
|
|
|
14
|
|
Net income
attributable to common shareowners
|
$
|
487
|
|
|
$
|
261
|
|
|
$
|
871
|
|
|
$
|
357
|
|
|
|
|
|
|
|
|
|
Earnings per share
(1), (2)
|
|
|
|
|
|
|
|
Basic
|
$
|
0.56
|
|
|
$
|
0.30
|
|
|
$
|
1.00
|
|
|
$
|
0.41
|
|
Diluted
|
$
|
0.55
|
|
|
$
|
0.30
|
|
|
$
|
0.98
|
|
|
$
|
0.41
|
|
Weighted average
number of shares outstanding (2)
|
|
|
|
|
|
|
|
Basic
|
868.7
|
|
|
866.2
|
|
|
869.0
|
|
|
866.2
|
|
Diluted
|
890.9
|
|
|
870.9
|
|
|
890.4
|
|
|
870.9
|
|
|
|
|
|
|
|
|
|
(1) On
April 3, 2020, United Technologies Corporation, since renamed
Raytheon Technologies Corporation ("UTC"), completed the spin-off
of Carrier into a separate publicly traded company (the
"Separation"). The Separation was completed through a pro-rata
distribution (the "Distribution") of all of the outstanding common
stock of the Company to UTC shareowners who held shares of UTC
common stock as of the close of business on March 19,
2020.
|
|
(2) Basic and diluted earnings per
share for the three and six months ended June 30, 2020 are
calculated using the weighted-average number of common shares
outstanding for the period beginning after the Distribution date.
Diluted earnings per share is computed by giving effect to all
potentially dilutive stock awards that are outstanding. For periods
prior to the Separation it was assumed that there were no dilutive
equity instruments as there were no equity awards in Carrier common
stock outstanding prior to the Separation.
|
Carrier Global
Corporation
Condensed
Consolidated Balance Sheet
|
|
|
(Unaudited)
|
|
As
of
|
(dollars in
millions)
|
June 30,
2021
|
|
December 31,
2020
|
Assets
|
|
|
|
Cash and cash
equivalents
|
$
|
2,630
|
|
|
$
|
3,115
|
|
Accounts receivable,
net
|
3,128
|
|
|
2,781
|
|
Contract assets,
current
|
695
|
|
|
656
|
|
Inventories,
net
|
1,885
|
|
|
1,629
|
|
Other assets,
current
|
416
|
|
|
343
|
|
Total current
assets
|
8,754
|
|
|
8,524
|
|
|
|
|
|
Future income tax
benefits
|
461
|
|
|
449
|
|
Fixed assets,
net
|
1,837
|
|
|
1,810
|
|
Operating lease
right-of-use assets
|
786
|
|
|
788
|
|
Intangible assets,
net
|
1,071
|
|
|
1,037
|
|
Goodwill
|
10,279
|
|
|
10,139
|
|
Pension and
post-retirement assets
|
635
|
|
|
554
|
|
Equity method
investments
|
1,572
|
|
|
1,513
|
|
Other
assets
|
343
|
|
|
279
|
|
Total
Assets
|
$
|
25,738
|
|
|
$
|
25,093
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
Accounts
payable
|
$
|
2,362
|
|
|
$
|
1,936
|
|
Accrued
liabilities
|
2,541
|
|
|
2,471
|
|
Contract liabilities,
current
|
576
|
|
|
512
|
|
Current portion of
long-term debt
|
125
|
|
|
191
|
|
Total current
liabilities
|
5,604
|
|
|
5,110
|
|
|
|
|
|
Long-term
debt
|
9,600
|
|
|
10,036
|
|
Future pension and
post-retirement obligations
|
511
|
|
|
524
|
|
Future income tax
obligations
|
556
|
|
|
479
|
|
Operating lease
liabilities
|
635
|
|
|
642
|
|
Other long-term
liabilities
|
1,712
|
|
|
1,724
|
|
Total
Liabilities
|
18,618
|
|
|
18,515
|
|
|
|
|
|
Equity
|
|
|
|
Common
stock
|
9
|
|
|
9
|
|
Treasury
stock
|
(130)
|
|
|
—
|
|
Additional paid-in
capital
|
5,366
|
|
|
5,345
|
|
Retained
earnings
|
2,305
|
|
|
1,643
|
|
Accumulated other
comprehensive loss
|
(794)
|
|
|
(745)
|
|
Non-controlling
interest
|
364
|
|
|
326
|
|
Total
Equity
|
7,120
|
|
|
6,578
|
|
Total Liabilities
and Equity
|
$
|
25,738
|
|
|
$
|
25,093
|
|
Carrier Global
Corporation
Condensed
Consolidated Statement of Cash Flows
|
|
|
|
(Unaudited)
|
|
|
For the Six Months
Ended
June 30,
|
(dollars in
millions)
|
|
2021
|
|
2020
|
Operating
Activities
|
|
|
|
|
Net income from
operations
|
|
$
|
889
|
|
|
$
|
371
|
|
Adjustments to
reconcile net income to net cash flows from operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
168
|
|
|
159
|
|
Deferred income tax
provision
|
|
33
|
|
|
135
|
|
Stock-based
compensation costs
|
|
40
|
|
|
35
|
|
Equity method
investment net earnings
|
|
(125)
|
|
|
(86)
|
|
Distributions from
equity method investments
|
|
42
|
|
|
49
|
|
Impairment charge on
minority-owned joint venture investments
|
|
—
|
|
|
72
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
Accounts receivable,
net
|
|
(288)
|
|
|
27
|
|
Contract assets,
current
|
|
(41)
|
|
|
(140)
|
|
Inventories,
net
|
|
(210)
|
|
|
(325)
|
|
Other assets,
current
|
|
(27)
|
|
|
32
|
|
Accounts payable and
accrued liabilities
|
|
368
|
|
|
152
|
|
Contract liabilities,
current
|
|
42
|
|
|
37
|
|
Defined benefit plan
contributions
|
|
(27)
|
|
|
(27)
|
|
Other operating
activities, net
|
|
(119)
|
|
|
65
|
|
Net cash flows
provided by (used in) operating activities
|
|
745
|
|
|
556
|
|
Investing
Activities
|
|
|
|
|
Capital
expenditures
|
|
(132)
|
|
|
(94)
|
|
Investments in
businesses, net of cash acquired
|
|
(167)
|
|
|
—
|
|
Disposition of
businesses
|
|
1
|
|
|
—
|
|
Settlement of
derivative contracts, net
|
|
(6)
|
|
|
(23)
|
|
Other investing
activities, net
|
|
3
|
|
|
14
|
|
Net cash flows
provided by (used in) investing activities
|
|
(301)
|
|
|
(103)
|
|
Financing
Activities
|
|
|
|
|
Increase (decrease) in
short-term borrowings, net
|
|
(13)
|
|
|
(17)
|
|
Issuance of long-term
debt
|
|
74
|
|
|
11,734
|
|
Repayment of long-term
debt
|
|
(605)
|
|
|
(36)
|
|
Repurchases of common
stock
|
|
(130)
|
|
|
—
|
|
Dividends paid on
common stock
|
|
(209)
|
|
|
—
|
|
Dividends paid to
non-controlling interest
|
|
(30)
|
|
|
(8)
|
|
Net transfers to
UTC
|
|
—
|
|
|
(10,359)
|
|
Other financing
activities, net
|
|
15
|
|
|
1
|
|
Net cash flows
provided by (used in) financing activities
|
|
(898)
|
|
|
1,315
|
|
Effect of foreign
exchange rate changes on cash and cash equivalents
|
|
(2)
|
|
|
(17)
|
|
Net increase
(decrease) in cash and cash equivalents and restricted
cash
|
|
(456)
|
|
|
1,751
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
|
3,120
|
|
|
957
|
|
Cash, cash
equivalents and restricted cash, end of period
|
|
2,664
|
|
|
2,708
|
|
Less: restricted
cash
|
|
34
|
|
|
4
|
|
Cash and cash
equivalents, end of period
|
|
$
|
2,630
|
|
|
$
|
2,704
|
|
Carrier Global
Corporation
Segment Net Sales
and Operating Profit Reported (GAAP) to Adjusted
(Non-GAAP)
|
|
|
(Unaudited)
|
|
For the Three
Months Ended June 30,
|
|
For the Six Months
Ended June 30,
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
(In
millions)
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
|
Reported
|
|
Adjusted
|
Net
sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
|
$
|
3,120
|
|
|
$
|
3,120
|
|
|
$
|
2,291
|
|
|
$
|
2,291
|
|
|
$
|
5,606
|
|
|
$
|
5,606
|
|
|
$
|
4,250
|
|
|
$
|
4,250
|
|
Refrigeration
|
1,021
|
|
|
1,021
|
|
|
700
|
|
|
700
|
|
|
2,026
|
|
|
2,026
|
|
|
1,508
|
|
|
1,508
|
|
Fire &
Security
|
1,403
|
|
|
1,403
|
|
|
1,057
|
|
|
1,057
|
|
|
2,707
|
|
|
2,707
|
|
|
2,263
|
|
|
2,263
|
|
Segment
sales
|
5,544
|
|
|
5,544
|
|
|
4,048
|
|
|
4,048
|
|
|
10,339
|
|
|
10,339
|
|
|
8,021
|
|
|
8,021
|
|
Eliminations and
other
|
(104)
|
|
|
(104)
|
|
|
(76)
|
|
|
(76)
|
|
|
(200)
|
|
|
(200)
|
|
|
(161)
|
|
|
(161)
|
|
Net
sales
|
$
|
5,440
|
|
|
$
|
5,440
|
|
|
$
|
3,972
|
|
|
$
|
3,972
|
|
|
$
|
10,139
|
|
|
$
|
10,139
|
|
|
$
|
7,860
|
|
|
$
|
7,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
|
$
|
573
|
|
|
$
|
582
|
|
$
|
358
|
|
|
$
|
359
|
|
|
$
|
938
|
|
|
$
|
951
|
|
|
$
|
525
|
|
|
$
|
601
|
|
Refrigeration
|
123
|
|
|
126
|
|
61
|
|
|
64
|
|
|
250
|
|
|
255
|
|
|
160
|
|
|
163
|
|
Fire &
Security
|
148
|
|
|
169
|
|
106
|
|
|
112
|
|
|
298
|
|
|
333
|
|
|
226
|
|
|
238
|
|
Segment operating
profit
|
844
|
|
|
877
|
|
525
|
|
|
535
|
|
|
1,486
|
|
|
1,539
|
|
|
911
|
|
|
1,002
|
|
Eliminations and
other
|
(23)
|
|
|
(21)
|
|
(56)
|
|
|
(36)
|
|
|
(63)
|
|
|
(46)
|
|
|
(91)
|
|
|
(31)
|
|
General corporate
expenses
|
(38)
|
|
|
(35)
|
|
(27)
|
|
|
(23)
|
|
|
(69)
|
|
|
(64)
|
|
|
(63)
|
|
|
(59)
|
|
Operating
profit
|
$
|
783
|
|
|
$
|
821
|
|
$
|
442
|
|
|
$
|
476
|
|
|
$
|
1,354
|
|
|
$
|
1,429
|
|
|
$
|
757
|
|
|
$
|
912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HVAC
|
18.4
|
%
|
|
18.7
|
%
|
|
15.6
|
%
|
|
15.7
|
%
|
|
16.7
|
%
|
|
17.0
|
%
|
|
12.4
|
%
|
|
14.1
|
%
|
Refrigeration
|
12.0
|
%
|
|
12.3
|
%
|
|
8.7
|
%
|
|
9.1
|
%
|
|
12.3
|
%
|
|
12.6
|
%
|
|
10.6
|
%
|
|
10.8
|
%
|
Fire &
Security
|
10.5
|
%
|
|
12.0
|
%
|
|
10.0
|
%
|
|
10.6
|
%
|
|
11.0
|
%
|
|
12.3
|
%
|
|
10.0
|
%
|
|
10.5
|
%
|
Total
Carrier
|
14.4
|
%
|
|
15.1
|
%
|
|
11.1
|
%
|
|
12.0
|
%
|
|
13.4
|
%
|
|
14.1
|
%
|
|
9.6
|
%
|
|
11.6
|
%
|
Carrier Global
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP)
Operating
Profit
|
|
|
|
(Unaudited)
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
(dollars in
millions - Income (Expense))
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
HVAC
|
|
|
|
|
|
|
Net sales
|
$
|
3,120
|
|
|
$
|
2,291
|
|
|
$
|
5,606
|
|
|
$
|
4,250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
573
|
|
|
$
|
358
|
|
|
$
|
938
|
|
|
$
|
525
|
|
|
|
Restructuring
|
(7)
|
|
|
(1)
|
|
|
(11)
|
|
|
(3)
|
|
|
|
Impairment of joint
venture investment
|
—
|
|
|
—
|
|
|
—
|
|
|
(71)
|
|
|
|
Separation
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(2)
|
|
|
|
Giwee
acquisition-related costs
|
(2)
|
|
|
—
|
|
|
(2)
|
|
|
—
|
|
|
|
Adjusted operating
profit
|
$
|
582
|
|
|
$
|
359
|
|
|
$
|
951
|
|
|
$
|
601
|
|
|
|
|
|
|
|
|
|
|
|
|
Refrigeration
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,021
|
|
|
$
|
700
|
|
|
$
|
2,026
|
|
|
$
|
1,508
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
123
|
|
|
$
|
61
|
|
|
$
|
250
|
|
|
$
|
160
|
|
|
|
Restructuring
|
(3)
|
|
|
(3)
|
|
|
(5)
|
|
|
(3)
|
|
|
|
Adjusted operating
profit
|
$
|
126
|
|
|
$
|
64
|
|
|
$
|
255
|
|
|
$
|
163
|
|
|
|
|
|
|
|
|
|
|
|
|
Fire &
Security
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
1,403
|
|
|
$
|
1,057
|
|
|
$
|
2,707
|
|
|
$
|
2,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
148
|
|
|
$
|
106
|
|
|
$
|
298
|
|
|
$
|
226
|
|
|
|
Restructuring
|
(9)
|
|
|
(6)
|
|
|
(20)
|
|
|
(9)
|
|
|
|
Separation
costs
|
—
|
|
|
—
|
|
|
—
|
|
|
(3)
|
|
|
|
Chubb transaction
costs
|
(12)
|
|
|
—
|
|
|
(15)
|
|
|
—
|
|
|
|
Adjusted operating
profit
|
$
|
169
|
|
|
$
|
112
|
|
|
$
|
333
|
|
|
$
|
238
|
|
|
|
|
|
|
|
|
|
|
|
|
General Corporate
Expenses and Eliminations and Other
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
(104)
|
|
|
$
|
(76)
|
|
|
$
|
(200)
|
|
|
$
|
(161)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
(61)
|
|
|
$
|
(83)
|
|
|
$
|
(132)
|
|
|
$
|
(154)
|
|
|
|
Restructuring
|
(2)
|
|
|
(1)
|
|
|
(3)
|
|
|
(1)
|
|
|
|
Separation
costs
|
(3)
|
|
|
(23)
|
|
|
(19)
|
|
|
(63)
|
|
|
|
Adjusted operating
profit
|
$
|
(56)
|
|
|
$
|
(59)
|
|
|
$
|
(110)
|
|
|
$
|
(90)
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrier
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
|
5,440
|
|
|
$
|
3,972
|
|
|
$
|
10,139
|
|
|
$
|
7,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
$
|
783
|
|
|
$
|
442
|
|
$
|
1,354
|
|
|
$
|
757
|
|
|
|
Total restructuring
costs
|
(21)
|
|
|
(11)
|
|
|
(39)
|
|
|
(16)
|
|
|
|
Total non-recurring
and non-operational items
|
(17)
|
|
|
(23)
|
|
|
(36)
|
|
|
(139)
|
|
|
|
Adjusted operating
profit
|
$
|
821
|
|
|
$
|
476
|
|
|
$
|
1,429
|
|
|
$
|
912
|
|
|
Carrier Global
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
Net Income,
Earnings Per Share, and Effective Tax Rate
|
|
|
(Unaudited)
|
|
For the Three
Months Ended June 30, 2021
|
|
For the Six Months
Ended June 30, 2021
|
(In
millions)
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
Net sales
|
$
|
5,440
|
|
|
$
|
—
|
|
|
$
|
5,440
|
|
|
$
|
10,139
|
|
|
$
|
—
|
|
|
$
|
10,139
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
783
|
|
|
38
|
|
a
|
821
|
|
|
1,354
|
|
|
75
|
|
a
|
1,429
|
|
Operating
margin
|
14.4
|
%
|
|
|
|
15.1
|
%
|
|
13.4
|
%
|
|
|
|
14.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before
income taxes
|
731
|
|
|
38
|
|
a,b
|
769
|
|
|
1,227
|
|
|
94
|
|
a,b
|
1,321
|
|
Income tax
expense
|
(234)
|
|
|
42
|
|
c
|
(192)
|
|
|
(338)
|
|
|
29
|
|
c
|
(309)
|
|
Income tax
rate
|
32.0
|
%
|
|
|
|
25.0
|
%
|
|
27.5
|
%
|
|
|
|
23.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
common shareowners
|
$
|
487
|
|
|
$
|
80
|
|
|
$
|
567
|
|
|
$
|
871
|
|
|
$
|
123
|
|
|
$
|
994
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
|
$
|
21
|
|
a
|
|
|
|
|
$
|
39
|
|
a
|
|
Separation
costs
|
|
|
3
|
|
a
|
|
|
|
|
19
|
|
a
|
|
Debt prepayment
costs
|
|
|
—
|
|
b
|
|
|
|
|
19
|
|
b
|
|
Giwee
acquisition-related costs
|
|
|
2
|
|
a
|
|
|
|
|
2
|
|
a
|
|
Chubb transaction
costs
|
|
|
12
|
|
a
|
|
|
|
|
15
|
|
a
|
|
Total
adjustments
|
|
|
$
|
38
|
|
|
|
|
|
|
$
|
94
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect on
adjustments above
|
|
|
$
|
(1)
|
|
|
|
|
|
|
$
|
(14)
|
|
|
|
Tax specific
adjustments
|
|
|
43
|
|
|
|
|
|
|
43
|
|
|
|
Total tax
adjustments
|
|
|
$
|
42
|
|
c
|
|
|
|
|
$
|
29
|
|
c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
Diluted
|
890.9
|
|
|
|
|
890.9
|
|
|
890.4
|
|
|
|
|
890.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
- Diluted
|
$
|
0.55
|
|
|
|
|
$
|
0.64
|
|
|
$
|
0.98
|
|
|
|
|
$
|
1.12
|
|
Carrier Global
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
Net Income,
Earnings Per Share, and Effective Tax Rate
|
|
|
(Unaudited)
|
|
For the Three
Months Ended June 30, 2020
|
|
For the Six Months
Ended June 30, 2020
|
(In
millions)
|
Reported
|
|
Adjustments
|
|
Adjusted
|
|
Reported
|
|
Adjustments
|
|
Adjusted
|
Net sales
|
$
|
3,972
|
|
|
$
|
—
|
|
|
$
|
3,972
|
|
|
$
|
7,860
|
|
|
$
|
—
|
|
|
$
|
7,860
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
profit
|
442
|
|
|
34
|
|
a
|
476
|
|
|
757
|
|
|
155
|
|
a
|
912
|
|
Operating
margin
|
11.1
|
%
|
|
|
|
12.0
|
%
|
|
9.6
|
%
|
|
|
|
11.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations before
income taxes
|
375
|
|
|
34
|
|
a,b
|
409
|
|
|
670
|
|
|
160
|
|
a,b
|
830
|
|
Income tax
expense
|
(106)
|
|
|
(9)
|
|
c
|
(115)
|
|
|
(299)
|
|
|
75
|
|
c
|
(224)
|
|
Income tax
rate
|
28.2
|
%
|
|
|
|
28.0
|
%
|
|
44.6
|
%
|
|
|
|
27.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
attributable to
common shareowners
|
$
|
261
|
|
|
$
|
25
|
|
|
$
|
286
|
|
|
$
|
357
|
|
|
$
|
235
|
|
|
$
|
592
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Summary of
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs
|
|
|
$
|
11
|
|
a
|
|
|
|
|
$
|
16
|
|
a
|
|
Impairment of equity
method
investment
|
|
|
—
|
|
a
|
|
|
|
|
71
|
|
a
|
|
Separation
costs
|
|
|
23
|
|
a
|
|
|
|
|
68
|
|
a
|
|
Debt issuance
costs
|
|
|
—
|
|
b
|
|
|
|
|
5
|
|
b
|
|
Total
adjustments
|
|
|
$
|
34
|
|
|
|
|
|
|
$
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax effect on
adjustments above
|
|
|
$
|
(9)
|
|
|
|
|
|
|
$
|
(22)
|
|
|
|
Tax specific
adjustments
|
|
|
—
|
|
|
|
|
|
|
97
|
|
|
|
Total tax
adjustments
|
|
|
$
|
(9)
|
|
c
|
|
|
|
|
$
|
75
|
|
c
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shares outstanding -
Diluted
|
870.9
|
|
|
|
|
870.9
|
|
|
870.9
|
|
|
|
|
870.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
- Diluted
|
$
|
0.30
|
|
|
|
|
$
|
0.33
|
|
|
$
|
0.41
|
|
|
|
|
$
|
0.68
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Carrier Global
Corporation
Reconciliation of
Reported (GAAP) to Adjusted (Non-GAAP) Results
|
|
Components of
Changes in Net Sales
|
|
Three Months Ended
June 30, 2021 Compared with Three Months Ended June
30, 2020
|
|
(Unaudited)
|
|
Factors
Contributing to Total % change in Net Sales
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions /
Divestitures, net
|
|
Other
|
|
Total
|
HVAC
|
32
|
%
|
|
3
|
%
|
|
1
|
%
|
|
—
|
%
|
|
36
|
%
|
Refrigeration
|
38
|
%
|
|
8
|
%
|
|
—
|
%
|
|
—
|
%
|
|
46
|
%
|
Fire &
Security
|
25
|
%
|
|
8
|
%
|
|
—
|
%
|
|
—
|
%
|
|
33
|
%
|
Consolidated
|
31
|
%
|
|
5
|
%
|
|
1
|
%
|
|
—
|
%
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, 2021 Compared with Six Months Ended June 30,
2020
|
|
(Unaudited)
|
|
Factors
Contributing to Total % change in Net Sales
|
|
Organic
|
|
FX
Translation
|
|
Acquisitions /
Divestitures, net
|
|
Other
|
|
Total
|
HVAC
|
28
|
%
|
|
3
|
%
|
|
1
|
%
|
|
—
|
%
|
|
32
|
%
|
Refrigeration
|
28
|
%
|
|
6
|
%
|
|
—
|
%
|
|
—
|
%
|
|
34
|
%
|
Fire &
Security
|
13
|
%
|
|
7
|
%
|
|
—
|
%
|
|
—
|
%
|
|
20
|
%
|
Consolidated
|
24
|
%
|
|
5
|
%
|
|
—
|
%
|
|
—
|
%
|
|
29
|
%
|
Free Cash Flow
Reconciliation
|
|
|
|
(Unaudited)
|
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
FY
|
|
Q1
|
|
Q2
|
(dollars in
millions)
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2020
|
|
2021
|
|
2021
|
Net cash flows
provided by operating activities
|
|
$
|
47
|
|
|
$
|
509
|
|
|
$
|
937
|
|
|
$
|
199
|
|
|
$
|
1,692
|
|
|
$
|
184
|
|
|
$
|
561
|
|
Less: Capital
expenditures
|
|
48
|
|
|
46
|
|
|
57
|
|
|
161
|
|
|
312
|
|
|
53
|
|
|
79
|
|
Free cash
flow
|
|
$
|
(1)
|
|
|
$
|
463
|
|
|
$
|
880
|
|
|
$
|
38
|
|
|
$
|
1,380
|
|
|
$
|
131
|
|
|
$
|
482
|
|
Net Debt
Reconciliation
|
|
|
|
(Unaudited)
|
|
|
As
of
|
(dollars in
millions)
|
|
June 30,
2021
|
|
December 31,
2020
|
Long-term
debt
|
|
$
|
9,600
|
|
|
$
|
10,036
|
|
Current portion of
long-term debt
|
|
125
|
|
|
191
|
|
Less: Cash and cash
equivalents
|
|
2,630
|
|
|
3,115
|
|
Net
debt
|
|
$
|
7,095
|
|
|
$
|
7,112
|
|
View original
content:https://www.prnewswire.com/news-releases/carrier-reports-second-quarter-2021-results-301343816.html
SOURCE Carrier Global Corporation